Table 3:  Tax Expenditures Reference Table(a)

Table 3:  Tax Expenditures Reference Table(a)

Table 3:  Tax Expenditures Reference Table (continued)

Table 3: Tax Expenditures Reference Table (continued)

Table 3: Tax Expenditures Reference Table (continued)

Table 3: Tax Expenditures Reference Table (continued)

Table 3:  Tax Expenditures Reference Table (continued)

Table 3: Tax Expenditures Reference Table (continued)

Table 3:  Tax Expenditures Reference Table (continued)

Table 3:  Tax Expenditures Reference Table (continued)

Table 3:  Tax Expenditures Reference Table (continued)

Table 3: Tax Expenditures Reference Table (continued)

Table 3: Tax Expenditures Reference Table (continued)

Table 3: Tax Expenditures Reference Table (continued)

Table 3:  Tax Expenditures Reference Table (continued)

Table 3:  Tax Expenditures Reference Table (continued)

Table 3:  Tax Expenditures Reference Table (continued)

Table 3: Tax Expenditures Reference Table (continued)

Table 3:  Tax Expenditures Reference Table (continued)

Table 3:  Tax Expenditures Reference Table (continued)

Table 3:  Tax Expenditures Reference Table (continued)

Table 3:  Tax Expenditures Reference Table (continued)

Table 3:  Tax Expenditures Reference Table (continued)

Table 3:  Tax Expenditures Reference Table(continued)

Table 3:  Tax Expenditures Reference Table (continued)

Table 3:  Tax Expenditures Reference Table (continued)

Table 3:  Tax Expenditures Reference Table (continued)

Table 3:  Tax Expenditures Reference Table (continued)

Table 3: Tax Expenditures Reference Table (continued)

Table 3:  Tax Expenditures Reference Table (continued)

Table 3:  Tax Expenditures Reference Table (continued)

Table 3:  Tax Expenditures Reference Table (continued)

Table 3:  Tax Expenditures Reference Table (continued)

Table 3:  Tax Expenditures Reference Table (continued)

Table 3:  Tax Expenditures Reference Table (continued)

Notes
-	Nil
na	Denotes estimate of revenue cost is not available.
nec	Denotes not elsewhere classified. 
<X	Denotes revenue cost is less than X million dollars (eg <1 denotes that the estimate is less than $1 million). 
(a)	1997-98 figures are preliminary only and are subject to revision on receipt of tax data for 1997‑98. Figures for 1998‑99 to 2000‑2001 are projections based on currently available information.
(b)	The date of effect of this tax expenditure depends on the date on which the double tax agreement takes effect.
(c)	The exemption of income of Norfolk Island residents reflects that the Island is basically self‑supporting. The only contributions by the Commonwealth are of a one-off nature eg a dollar‑for‑dollar grant for a water and sewerage scheme. 
(d)	In the case of living-away-from-home allowances and living allowances paid to Defence Force personnel, the benchmark is defined to be compensation for the actual additional costs faced by employees in living away from their homes. On this view, the tax expenditure relates solely to any excess over such a component.
(e)	Denotes item referring to Australian-source income of non-residents.
(f)	Includes invalid relative rebate, parent or parent-in-law rebate and superannuation pension or annuity rebate.
(g)	Includes invalid relative rebate and parent or parent-in-law rebate. 
(h)	The Medicare levy in 1996-97 was raised from 1.5 to 1.7 per cent to fund the costs associated with the gun buyback scheme (the gun levy).   It is assumed the revenue impact of exemption from the gun levy is experienced in 1997-98. 
(i)	Recent measure, yet to be legislated.
(j)	The tax expenditure element here refers to the exemption of income not related to the application of the mutuality principle; ie, from trading with non-members and investment income.

Table 3:  Tax Expenditures Reference Table (continued)

(k)	Based on estimates and projections of fuel use published by ABARE in Australian Energy Consumption and Production (1997).  Calculated on equivalent unit of energy basis.  The estimates and projections exclude the effect of the recent Commonwealth safety net arrangements for petrol on the benchmark following the invalidation of State business franchise fees by the High Court.
(l)	The tax expenditure element relates to the difference between the standard specified values and market value.
(m)	The IED scheme allows primary producers to make deposits that are tax-deductible upon deposit but assessable on withdrawal. A negative expenditure may thus occur in a year when farmers make a net withdrawal from the scheme. The main effect of this scheme is to allow a tax deferral, but tax will be reduced to the extent that deposits are made in high income, high marginal tax rate years but withdrawn in years of low income and low marginal tax rates. In the long run, the real value of the concession for farmers will be the sum of each year’s estimate.
(n)	The general (that is, non-syndicated) R&D tax concession provides both immediate deductibility of capital expenditure and premium deductions over 100 per cent for eligible expenditures.  The tax expenditure estimates provided relate only to the revenue cost of  premium deductions for R&D under the general concession.  No estimate is made of the cost of the bring forward of capital deductions.  As a result, the estimates  provide a lower limit to the revenue cost of the tax expenditure on R&D against a benchmark of amortisation of eligible expenditures over time.
(o)	This exemption was removed from the beginning of the 1994‑95 income year for credit unions with gross balance sheet assets of $30 million or more and for other credit unions from the 1995‑96 income year. Taxation will be at the concessional rate of 20 per cent until the beginning of the 1997‑98 income year at which time the full corporate rate will apply. Concessional rates of taxation will be provided for credit unions with low levels of notional taxable income.
(p)	The term 'declared rate' (also referred to elsewhere as the 'benchmark rate') is used to refer to the rate declared by the Commissioner of Taxation for the purpose of determining FBT liability for loan benefits.
(q)	This estimate is derived from donations claimed on individuals’ returns only. Donations made by companies, partnerships and trusts are not included. This estimate will therefore significantly understate the true cost to revenue of the concession. 
Sources:  Unless otherwise specified, Australian Taxation Office, Australian Customs Service, or the Treasury.